Premium Bonds are run by National Savings and Investments (NS&I). You have the chance to win tax-free prizes on the first day of each month. The odds of winning are 34,500 to one for every £1 bond. Two people win the £1million jackpot every month, with five others making £100,000.
How do Premium Bonds work?
This month’s £1 million winners come from London with bond number 398WP403111 and North Yorkshire with bond number 304HM348661.
You only need to have £25 invested to be eligible. Anyone who is 16 and above can buy Bonds, and you can invest up to £50,000. Bonds can be bought over the phone, online, or by post.
Once you’ve bought your Premium Bonds you can manage them online and by phone. A holder’s number is given to everyone who owns Premium Bonds. This number links all the individual Premium Bonds you have, and you can quote it whenever you buy more Bonds, cash them in or have a query.
With Premium Bonds, unlike other saving schemes, there is no interest earned. Instead, the interest rate funds a monthly prize draw for tax-free prizes.
Each month NS&I gives out more than three million prizes to Bondholders, with winning numbers chosen at random. The tax-free prizes range from £25 to £1 million.
From Spring 2021, NS&I will begin phasing out the use of cheques. Instead, prizes will be sent automatically by NS&I via your chosen payment method. For a prize of £5,000 or more, NS&I might still have to check with you first before paying it so winners will be sent a claim form to complete and return.
You can choose to either have your prizes paid directly to your bank account or automatically reinvest your prizes into more Bonds. You can cash the money out of your account whenever you want.
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